tv Closing Bell CNBC December 6, 2021 3:00pm-5:00pm EST
along in a minute to take you through on a day where the dow is up 630 opponents. now off the highs but nevertheless roughly 2% gain and nasdaq trailing a bit but also higher thank you for watching "power lunch. "closing bell" starts right now. thank you. welcome to "closing bell." i'm sara eisen here at the new york stock exchange. plenty of green on the screen to kick off the trading week. the dow is erasing last week's losses. >> good afternoon. i'm wilfred frost. today investors digesting the latest on the omicron variant and optimistic headlines white house medical analyzing dr. fauci saying the data is encouraging. reopening plays like airlines, cruises and online travel jumping today. oil is getting a pop
and we are keeping a close eye on the crypto market after a brutal weekend of trading. 59 minutes left of the session energy in the lead. >> every sector higher coming up david giroux with the outlook for 2022 three names he says are a long term opportunity shares of poshmark higher today. we'll talk to the ceo about the business and what he's seeing in terms of consumer spend. >> first let's focus on the big stories with mike santoli and a closer look at the volatile tech sector mike, the broader market's up 1.3%. >> respectable we responded to what's building up as an oversold market the average stock down more than the indexes.
a reason it seemed that we didn't get a forceful buys of the dip last week is not knowing to deal with two week's worth of unknowns and omicron and i think there's some stress point in the market that we weren't sure of a forced liquidation to come this morning said maybe not. at least for the moment so we bounce it is a process. it is not a moment i do think it's important we held around the september highs and the 50-day highs and where the market should have bounced we have to see if there's a mode of is eselling rallies. look at the s&p. i like to look at the vanguard extended market index. just look at this massive sell-off right there really a dump of not just small cap stocks but growth stocks not in the s&p high up in the index is square,
uber, snowflake, zoom. you see a lot of the froth purged from the market it is maybe not enough in itself just to get the market moving and then investigator positioning with retrenchment, that is a positive deutsch bank with a composite of investor positions last week the biggest drop in positioning since the covid crash there. it is only back to around neutral levels but with a 5% index decline you wouldn't expect more than that. positioning is cleaned up so everything is moving probably in a positive direction and got to wait day-to-day. >> i was going to say if last week is anything to go by we have a long way to go with days like this last week. certainly intraday performance like this. >> we did. there's signs of stability out there and contingent on continuing to go in the right direction.
worth pointing out the s&p 500 is below trading wednesday morning of last week. >> thank you turning to technology well off the lows of the session and climbing deirdre bosa has more on the volatile space what are you watching? >> very volatile the tech heavy nasdaq lagging this morning and losing some steam as we head into the close. last week we saw the tech sprawling to bigger tech like nvidia some of the most beaten down names like docusign and zoom rebounding today tesla shares bounced after hitting bear market territory. nvidia sittinging out today's rally with the semi sector the sector of course is a massive pout performer this year
they have been sturdier. another group that's held up better is mega cap tech. apple positive over the last week and amazon up more than 2% today or was lost some steam. amazon investors could benefit from late shopping heading into deeper the holiday season thanks to the massive fulfillment network building out over years. $1.7 trillion value of the nasdaq taken out over two weeks. >> so painful in the names which were so beloved and so popular are the analysts changing the valuation metrics on the fact that the fed is looking to raise interest rates and affecting the analysis around the stocks >> when concerns starting to rise around the omicron variant you didn't see the stay-at-home darlings actually move higher so
a lot of analysts are pointing to the fed driving moves so we are seeing the mega cap large names, the semis hold up better because they're profitable versus high momentum growth names not yet profitable. seen as sort of ones to continue to lose the most in a fed tightening environment. >> thank you so much more that we are off the session highs but still up the best part of a percent for the nasdaq and 2% for the dow. after the break, much more on the rally. nuveen with the forecast for the market and two cloud stocks to buy. we'll get the picks from the firm's head of equities next you are watching "closing bell" on cnbc.
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in a moment but big picture thoughts i guess the fed is high on the agenda this week as a key factor what are you expecting there and for the overall outlook for markets at the market? >> rolling into 2022 with omicron and the fed. first taking a look at omicron, each wave of variants had less economic impact than the prior wave and we don't think this is a long term hit to economic growth and encouraged with less hospitalizations and mortality rates versus the delta variant the playbook for the fed for 2022 probably looks like tapering until the end of the first quarter. second quarter watching inflation. the base effects of inflation should help that number settle and seeing a shift in spending from goods to services so it may give the fed breathing room. markets expect two to three hikes next week.
also, if you look at the two last big rate hike cycles it took nine to 14 rate increases before the s&p peaked so just because the fed raises rates in 2022 doesn't mean it's the end of the bull market. >> i guess the other one to get a glimpse of last week is whether investors pivot from a fear of missing out approach to a better book profits type approach did you fear about that last week >> i think it can because valuations of the market 2022 is going to be dependent on earnings growth or companies we can't count on valuation expansion. we are selective on the companies we look at you need pricing power and drivi driving revenues and like the
cloud sector here. that's an area of the market that helps the clients drive revenues. >> doesn't it matter which cloud stocks you go for? it is an area under heavy selling pressure with high growth parts of the market which that is. >> definitely. the digital is an advantage but we need to be selective. we like salesforce and hub spot here salesforce was disappointing last week reporting the quarter. and they disappointed with the growing pains. but going forward they have a total addressable market to grow in the double digits and grow revenues by 20%. we think it's a buying opportunity and hub spot is a leader in the small and mid size client market and coming out of a recession focus on the companies to help the clients
grow the revenues and tended to see that with the cloud companies in the past. >> tell us more about hub spot is why now >> we like the client focus in the small and mid size area out of the way of the other players and we think there's growth ahead of them. with this duration trade happening and the 10-year yields going up this tends to be somewhat negative for the long duration technology companies and where you can pick an opportunity. buy the structural growers to do well over the next cycle. >> what about salesforce disappointing on the quarter and outlook in particular. where's the valuation coming in? it is also a long term winner. >> yeah. they -- people wanted to see more they came out in september really talked about a bigger ma market for them and then let people down last week not seeing
the follow through from the company. you have a company to grow revenues over 20%. a market growing almost that much going forward it is tough to just absorb the valuation for salesforce but looking at the structural growth going forward we think there's upside for the stock price from here. >> wanted to pivot away from u.s. equities because seems to be bearish in and around china at the moment. but you're quite constructive. >> we are on emerging markets around china playing china we do it indirectly a company like caring with a third of the business egs posed to the chinese consumer but going into china and owning the stocks is like catching a falling knife. there's risks that are hard to analyze and playing china indirectly and looking around
china to taiwan and korea to benefit and like developed europe from here as the 10-year yield starts to rebound it could be good for developed international markets in the europe region. >> you expect the 10-year yield to be higher everyone expects that and then goes back down we are in the low 1.40s. where do you expect that to land and impact stocks? >> our call is that it probably goes up to about 1.75% range or around there but that's why we come in with a barbell approach between gorowth stocks and cyclicals. so it's not that we want to sell the growth stocks to buy the cyclicals because as i don't get into later in 2022 if inflation does settle and doesn't raise rates as fast as people expect then the 10-year settles in the 1.75 to 2% range
>> great to have you thank you for joining us. >> thank you. having a nice rally. big comeback day the dow off session highs but up 2% 680 points or so up on the s&p 1.3% every sector green nasdaq up 1% small caps are really coming back up 2.5%. after the break, shares of kohl's heating up today after an activist firm pushes for a shift in landscape look at the top searched tickers on cnbc.com. yields are higher today followed by tesla officially in a bear market nvidia under pressure today. cid luand apple up we'll be right back.
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welcome back let's have a look at the s&p 500 sec tar heat map worst sector health care up more than half a percent. energy leads the charge up 2% as you can see. cyclical and sort of defensive tilt to the best performers but not turning the nose up at this. 1.4% on the nasdaq. >> it's casinos, hotels and airlines. >> and energy. >> omicron has been better milder cases is encouraging the market shares of kohl's jumping today as an activist investor pushing the company to explore a strategy shift leslie picker has the story. after they made another deal with an activist investor. >> yeah. a new activist investor in
kohl's for those of you out there who feel like they've seen this movie before. this time engine capital which is different than engine number 1. they have about 400 million under management they're pushing forral alternate including separating the businesses and potential sale of the company to private equity as an option for the company to consider kohl's recently reached agreement with investors in april. that group which owned just shy of 10% focused on compensation, inventory management, monetizing real estate and et cetera. they believe that the e-commerce business to fetch more than $12.5 billion which is about 40% higher than where the value traded on friday
kohl's says in a statement to cnbc the kohl's board and management team examine all opportunities for maximizing shareholder value. our strategy is gaining traction and driving results. strong performance today with shares up about 6% >> how did this become so popular? i remember when saks did this. we haven't seen the dotcom ipo and maybe next year? why are investors so excited about this strategy? >> yeah. it is -- you can actually point it all the way back to saks and the valuation to get from the ipo. that was a signal to investors to be a really lucrative transaction. if they believe to get $6 billion in this ipo then what could a macy's get and kohl's and that got kind of the wheels turning to look at various
retail everies to see where the low hanging fruit might lie in this separation idea it is important to note saks ha ha ha hasn't officially done this yet. but the ball is rolling. >> we'll see what happens. kohl's had been doing well this year thank you. this wednesday we have an interview with kohl's ceo right here on "closing bell" 4:00 p.m. eastern time and will ask her what she thinks about this strategy it is very trendy in department stores now getting some pressure from investors. >> we'll see on wednesday. looking forward to that one. higher across the board by almost 2% on the dow still to come, the ceo of poshmark with a pulse check on the consumer still down substantially since
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today. riot blockchain, square all lower in the session two pet stocks going in opposite directions webbush upgrading petco and downgraded chewy to neutral. saying it expects second half results to be in line with estimates. chewy was mentioned by jim cramer today jim will be hosting a special event for the ninvesting club o thursday he's answer member questions you can become a member. go to cnbc.com/investing club or point the phone at the screen. chewy peaked in february 2021 with some other stay-at-home stocks treated that way with the pet adoption, ordering online craze. >> some parts of the market are still soft today
everything else is higher but weakness it's time now for a cnbc news update. hi. >> hi. let's get straight to the news happening at this hour the head of the minneapolis police department will not serve another term by the chief. the department is reeling since four officers charged in george floyd death toyota will build a battery plant in north carolina and begin production in 2025 and will be able to supply batteries for 800,000 cars a year. new york stock exchange is getting a new president. stacy cunningham is being replaced by lynn martin. and someone who claims he invented bitcoin has won a trial over $50 billion cryptocurrency.
curtis wright sued for half the fortune by a family saying worked with wright on the development. a south florida jury found he owes $100 million and said he would prove he is the bitcoin inventer if he won this case back over to you guys. >> hmm. >> hmm. >> mystery thank you. >> yes. online resale company poshmark with a strong day up next the company ceo joins us to talk about the stock. plus david giroux.
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welcome back let's have a look at the dow heat map as we gain what nearly 2% on the dow 660 points only three stocks there in the red at the bottom there. verizon, nike and merck. but pretty strong across the board. intel, visa, among the other top performers energy the best. health care the worst. >> oil prices up more than 5%
helping energy. poshmark is jumping today and down sharply since the public debut in january. revenue taken a hit. and the company has been increasing marketing spending. joining us in an exclues i interview can the founder. good to have you welcome. can you hear hopefully -- we'll work on the audio and get him back looking forward to talking to him and finding out about the consumer environment they do resale which is hot right now. and consumer spending isn't a good environment but the stumbles of apple and the markets spend -- >> side investments, as well high-end luxury. i think we'll get him back and take a break and get back to that interview we are higr heby 642 on the dow.
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it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. get e*trade [ding] and start trading today. as we mentioned before the break poshmark having a strong day today. joining us now is poshmark ceo we fixed the audio good to have you on the show welcome. >> thank you for having me. >> i mentioned the stock performance. performance has kind of been a mixed bag. why is that? isn't the resale market very strong right now what are you seeing? >> resale market is strong we are seeing that resale has become both unique and an
affordable way to shop and what we are providing is a diverse selection. we see growth in sustainable brands and stuff around trends so you see tiktok driving trends seeing brands that are up almost 100% in terms of growth and all of that makes for secondhand being the new new for the season. >> a problem wall street has be the stock and the story is that heavier marketing spend to drive growth and usually great if you see the top line growth that's been expected and that's not happening. why is that? what are you going to do about the marketing? >> yeah. apple privacy has really made mobile marketing which is 80% of the business has become more expensive and what we have shared is that the early data in
q4 shared in october is a strong result of that spending so we are seeing the early positive indicators on that marketing spend and coming out of a nice thanksgiving weekend for poshmark. >> i wanted to ask about the takeup of buy now pay later and whether we think we are at the start of that trend or a bit overheated. >> i think we are definitely of that trend for the consumer, a lot of consumers haven't experienced it we launched it in july and we have seen an extremely strong takeup of that feature and aspect of buying and it brings new buyers and drives up value for us. >> you bought suede one to
authenticate items how big of an opportunity is that for you it is very competitive. >> it is a massive opportunity the demand for that segment is only going up across the board and seeing for example the traditional lux ri brands like gucci and louis vuitton trade up we are continuing to see growth in that segment as well as sneakers what suede one does is gives us the ability to authenticate properties below the price threshold and broadens the items in the marketplace. >> in terms of expansion the next big step is india. >> yeah. india is something we launched in september and seen great traction and the community is
forming well a nice thing in india is because the market is somewhat open and they suffered from covid early on there's physical meet-ups happening and been the key to successful formation of the poshmark community in india. >> i mentioned the performance since the ipo. how do you frame the weakness since going public do you regret doing it at this time >> not regrets the way i think about it is focusing on the growth initiatives and as you said expanding and fine tuning the experience i think the two things that make poshmark really unique, we don't touch inventory that leads to 80% plus gross mar ins and we are probably the only
marketplace in the world where sellers help other sellers succeed. that is the foundation and something you can't find whether it is a seller helping share items, giving advice or meeting them physically to mentoring is pretty unique about the marketplace of poshmark. >> thank you for joining us. >> thank you. stocks are pushing higher on the dow. we have a great lineup in the second hour of "closing bell." what clients have been buying and selling amid the volatility since black friday a crypto expert about bitcoin's flash crash and what investors need to do now the three stocks that present great long term opportunities and tell you act the latest effort from doordash to stand out in the credit grigg economy. but first we are going straight into the "closing bell" market
zone mike santoli here to break down the moments of the trading day we have strategist anastasia omarosa back, as well. the dow on track to erase all of last week's losses doesn't seem like that bothered the market it was already there last week so is today a reflection of the better news on omicron >> the absence of worse news is how i think about it if you look at late friday we got an attempt of a comeback as the market deeply oversold it wasn't stronger because we didn't know what the weekend will bring on the covid situation and the credit markets starting to soften up with the
indications of just trapped funds, investors having to really pressure the worst hit stocks harder. docusign and going down someone is deleveraging. some stocks most beaten up bounced. volatility indexes are less contorted. i think an initial step saying we didn't get the huge market stress event let's do the dip buying. we are in a downturn >> we have seen that stock today but one day only but not across the board in the first place still a lot -- the art complex we come back is just about flat. not really bouncing significantly. sorry. it is up 1.4%. but the likes of tesla, peloton, nvidia below the 300 mark and
profit taking going and some areas of the market seen a switch from investors. >> no doubt. the areas in favor because they represented momentum and the fact of a public embrace of this kind of disruptive companies is not easy to get back with a data point. you have 600 new lows on the nasdaq today the damage is piling up there. >> what is the bigger problem for the market now omicron variant? the fed? would you be buying on the concerns >> yeah. i think all of those were problems for the market. yes i am encouraged by the market action today and buying on the dip this is a more constructive backdrop of this week because a lot of concerns have gotten to be reflected in the market over the last week. we worried about the feed with a
hawkish pivot and did that and rate hikes or tapering expectations being faster is reflected in the market. i worry about the price of oil it was moving higher and needed to be some reckoning in the oil market and got that last week and then some. and then we worried about the delta variant that was then the omicron variant and starting to find out over the weekend even though cases surge in south africa the severity doesn't seem to be surging and worked through the fears. we have priced them in taking a look at the price of airlines or hospitality stocks they reflect the worse-case scenarios and i don't think we get that and then finally to mike's point there's squaring up of speculative positions that
happened over the last week. look at tech and cryptos they sold equities and technology and what needed to happen for a constructive backdrop here. >> travel stocks are taking off today. hi, seema. >> dr. fauci comments over the weekend seen as encouraging. expedia ceo just in the last hour saying he thinks over time consumers will be desensitized to headlines of covid on travel. on the restrictions last week arising from omicron kern said addinging obstacles to travel leads to low every demand. competition is on the horizon. meantime some big moves in the cruise lines among the most reactive sectors
to omicron news. sold off on friday rebounding today despite news of 17 cases of covid on a cruise ship in new orleans. >> thank you so much anastasia, good entry point for the broader travel sector? >> i like it i think as i mentioned airlines, leisure and hospitality came under pressure but looking last week be the basket today up about 5% we have several catalysts to still be intact into 2022. we should have the more full resumption of international travel down from pre-covid levels and business travel down about the same so i don't think omicron deters it. i like buying back into the stocks. >> what's the cheapest
>> they're all down significantly. it is not a matter of valuation but the upside catalyst here and i think the airline story might be pretty straightforward as the travel resumes i like hotels because if you look at revenue per available room down significantly internationally so you have that identifiable catalyst there. >> they're all working today a trio of electric vek makers making news today. phil >> reporter: start with lucid saying this morning that it received a subpoena from the s.e.c., enough to knock the stock down about 14% and now 10%. lucid says that the s.e.c. probe appears to be focused on the combination with the blank check company churchill property and part of the spac deal. the other so.e.c. related story
comes to us from reuters reporting that tesla is the subject of an s.e.c. investigation. this investigation appears to focus on tesla's solar panel business and how the company reporting potential fires with solar panels finally there is rivian. ten firms on wall street out with coverage reports today on rivian all generally positive bearish might be goldman sachs starting at neutral with a $94 price target adam jonas calling rivian the one to challenge tesla has a price target starting rivian at $147 that helped rivian move higher today. back to you. >> been a big part of that thesis thank you. we have to start with tesla entsdserring bear market but 19% off the highs.
a lot of people paying attention as a big market cap weighted stock and elon musk with a poll to share stocks and the stock is not up since. >> the ceo and largest shareholder is leaning on the stock for weeks and holding this thousand dollar mark what's interesting is rivian is trading in a vague way at 10% of tesla's market cap i don't know if that makes sense at all but feels as if the street having essentially not given credit for how the public would just give tesla so much wleesh and capitalize this company, they want to make sure they are out in front of rivian. 100 billion out of the gate is aggressive. >> tesla 100 nvidia 300
they were both below in the session. >> trying. >> defended. >> trying. seems like it mat everies to some crowd out there whether that's where the options are clustered. or something like that nvidia with a weak morning. >> keeping an eye on those approaching the close. energy the out performing sector brian sullivan in houston with the details. >> the kocommodity and the stocs themselves optimism because people get back together first time in the united states for wpc but global demand for oil and gas will be above pre-pandemic levels by sometime next year from u.s. driving demand, chinese demand or jet fuel demand as international
travel starts to blossom again we caught up with a man in private industry and that's the ceo of aramco. i asked him about demand and sounded to me pretty bullish. >> very optimistic on the pickup in demand. we think '22 will be exceeding pre-pandemic level in terms of demand but right now it is balanced between supply and demand next year there will be more demand. >> optimistic. but a lot of optimism of global demand and the market coming back in a big way in 2022. >> thank you so much much appreciated looking forward to the interviews done there tomorrow morning and throughout the day
is this an attractive sector or more due for a pullback that it did have as of late? >> it was due in the fall but now -- a range on oil that they have -- $60 a barrel and $80 a bail is a constructive break even so at $60, $80 they make significant cash flow and the dividend is there. i do think there's a lot to like there. i would be looking to get back on pace. >> exxon also going for net zero by 2030. i wonder if these -- if they can attract esg flows into the companies. >> you can or at least stop propelling esg minded investors
but the sharp pullback, they got in crash mode probably vindicates the idea that look we are not just going to rush out and reinvest and ramp supply up again. for esg reasons or the market prefers it capital discipline is maintained with the biggest players there. >> up 1.2% on the s&p. what are you seeing? >> constructive. more stocks up than down on the new york stock exchange the volume skew is pretty up to the upside 4 to 1 advancing volume to declining volume so the underneath looks pretty good here. i mentioned the credit situation to make sure that corporate credit risk appetites maintained here you see the high yield etf catching up. a short term against treasuries here that's a net positive. you don't want to see that too
sloppy to have an issue for equity valuations. volatility index down over 3 points on the day. reluctant to come down and elevated but it is a positive to come down off that 30 level. i mentioned on friday the way that the vix futures inverted. that's a bottom signal when it u uninverts again. there's a push to new high just people were not paying up hand over fist. >> as high as 35 on the vix. >> we were as high as 776 on the dow. off the session highs but up nicely 632 or so. most dow stocks higher an exception for nike, verizon and merck. s&p 500 also seeing some nice broad gains up 1.2%. every sector is positive as we speak.
you see the cyclical groups leading the charge nasdaq is up into the close. almost a full percent. not everybody in the nasdaq is doing well pressure on nvidia, tesla, amd, lululemon. small caps coming back strong today up 2% after they were technically in correction. down 10% off the recent high dow with a gain of 642 points. ♪ welcome to "closing bell," everyone i'm wilfred frost with sara eisen and mike santoli coming up, a portfolio manager buying stocks amid the covid sell-off last year with his top three picks for 2022 anastasia omarosa is still with us mike, a strong rebound, a broad rebound, and although fractionally off the highs of
the day held the bounce. >> we did hold it. i think it's a net positive in terms of the bulls looking for evidence that this was simply another routine pullback with the drop in the s&p over a couple weeks did not really break beyond that most stocks corrected much more deeply than that credit firmed up it is a step at a time you have to point that out if you looked at a 10-day chart of the s&p looks like a down trend. we haven't broken free of that i think it is good news that the downside momentum is halted. seems a tremendous amount of selling swamps over the nasdaq to look washed out that's a net positive and got to see what tomorrow brings. >> had a crypto crash over the weekend but could that be a signal, a warning, an omen for
the market with the speculative parts of the market that cooled off like the nasdaq 100 stocks, a zoom 60% off the highs >> i think it is a coincident indicator and it is interesting because you look at an asset like crypto and sometimes moves with inflation expectations or a hedge or trades as a pro risk pro cyclical asset and what happened with bitcoin in particular is earlier in the fall it was trading higher with everybody betting on inflation rising that narrative turned because inflation is rising and seems like the fed is actually going to start doing things about it so i think that's why near term bitcoin lost some luster and trading with a high correlation with equities and tech shares and an opportunity for crypto, as well. this is a tech asset and it has
certainly has tech volatility but there's a lot of selling in the market over the last week and seen that in crypto. seen that in tech shares hedge funds i think had net selling that was the highest in tech over last five years. i'm encouraged of the squaring of positions. >> let's bring in jj hannahan with new data on what clients is buying and sell amid the latest volatility. >> hi, sara. >> where's the retail trader amid the volatility? >> actually the retail trader is taking a bit more exposure over the last motto the market and looking at last week with the volatility, it seemed like friday afternoon or friday and friday afternoon particularly saw people start to buy more it is interesting. retail leads with apple and
microsoft. in terms of volatile times as the stocks they want to go to and in this case it was took until friday until people started to buy those and didn't see the -- what we see in the past were aggressive buying immediately. >> what were they -- what else were they looking to buy >> so yeah so some other names to buy, draftkings and amc two stocks you talk about a lot. under 32 we saw clients not necessarily new clients but we saw a lot of clients adding to the positions overall. that didn't hold true for gamestop and started to see more sellers in gamestop and i thought was interesting. moderna was one, every time it gaps down we see clients nibble at that one and interested to see what happens to that stock over a few weeks with a rougher
day this morning and then nvidia and amd. continued through last week. that's been a stock the clients are on for a while and seem to like the action in that stock and again one that a lot of people sort of over the last few months put the money in the portfolio on. >> over the last month and the week were the clients overall net buyers or sellers of u.s. equities >> buyers. more so over last month with a higher exposure to the market than in the past last week they were buyers but it took until friday when clients started to buy a little be the more. i think they were nervous in the beak as mike got done talking about some of these volatility swings heading into the end of the year i think people were more nervous coming off november.
>> are they buying into the weakness in tesla? >> it is interesting tesla sub 1,000. our clients start to buy we saw buyers this morning some on friday but the interesting thing about tesla is earlier in the week the clients started to lighten up on tesla. so now as it hit 1,000 level on friday and then sub 1,000 today we definitely saw clients step up and not just clients adding to positions but new clients coming into tesla to buy it there. >> and sastasia, with all the volatility at the last week and month that the clients were still net buyers do you get that same feeling from your clients that they're willing to buy the dips rather than get very fearful? >> volatility is a good thing in
terms of drivering client activity why clients were looking for tactical trade ideas last week. they wanted to monetize the elevated levels of volatility. one way is to look at the vix index and another way to look at the spread between the implied volatility on puts versus on calls and you have seen that spread and the relationship blow out to the highest levels since march of 2020. it was the same level so that was the fear factor that was expressed in the options market and what clients can do in the times is sell that volatility and that's what the clients were doing. the other part is certain names that are favorites whether in bio tech or tech that clients look at and i think especially now this week with the clearing out in tech there's going to be more of it this week. >> what do you make of the
retail activity? >> it's not caused a flight from the market in a wholesale way but amc and gamestop are 60% off the highs why not because the investors stuck around but some biggest volumes in tech leveraged. qqq is heavily traded and could be swapping out. to take a tax loss and sell some of your depressed stocks take the loss and you want to recycle that into some exposure in tech. might be what's going on and i think it is impressive that tech is involved. there's a good signal and shows that retail investors buying calls can't drive the market up every day. >> what have the clients been doing in the crypto space as of
late >> well, you know, you see days like saturday so our clients today buying a bit more crypto futures than they were in the past and the etfs based on saturday's big move down and before that the 50,000 level i think is difficult for people because that's level that people had trouble to commit and the clients weren't as heavy volume-wise as in the past. >> good to see you as always. >> thank you. >> anastasia, wanted to zone in on your best trade idea for today. what have you gone for >> software. we often talk about software being where the growth is. it's not often on sale but today it is on sale. looking at performance down 15%
and i like to look at it in terms of ev to sales and you have seen that come down 21 pshs 23%. which is more than the average that we have seen in this software pullback so i do like the fact that software seems to have priced in about 100 basis points of rate increases and what consensus is saying and then from the technical standpoint this is a sector that screams as an oversold sector and hedge funds are selling and the position is cleaning and the catalyst is there. this year software spending is on pace to grow at 13% next year it is still growing 11% while the overall global i.t. spend is likely to slow down you get it on sale now. >> second person on the show to make that call
thank you. >> thank you. we are just getting started here on the second hour of "closing bell. cryptocurrencies crushed over the weekend. we'll discuss whether it's a buying opportunity with the ceo of avanity bank. shares of ge down 11% since november but the stock is undervalued says an analyst and will be here to make the bull case much more coming up on "closing bell."
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bitcoin tumbling over the weekend before stabilizing today. price dipped to $43,000 on saturday down from $57,000 on friday morning. should crypto investors expect more swings going forward? that's silly anyway let's bring in katelyn long from avanity bank and worked at morgan stanley and wyoming blockchain task force. thank you for joining us clearly volatility over the
weekend. my question relates to some of the data that's dripped out today about the percentage of crypto investors who only got in in the last year or so and whether that concerns youthat suddenly people might be feeling the pain much more than the headline pullbacks in prices might suggest. >> well sure and a lot of small buyers have entered the market as bitcoin itself has gone more global and seen in el salvador a concerted use by retail investors. retail users definitely all i would say is i got in two bull markets again bitcoin goes through four-year cycles and tend to at in point in the cycle have new buyers come in and some may end up with losses that. that was me two losses ago and i stuck it out and it was worth it to stick it out rather than
leave. >> i know so much about crypto is decentralizing. changing the rules and all that. have we got glimpses that trading on the weekend is not sensible >> it is interesting it is a 24/7/365 market and you can have big moves overnight and some everidence that you see bi moves overnight and over the weekend 'have to make sure that the positions are appropriately fixed before you go to bed or sign off for the weekend not watching it because you can see big moves. i will add that this four-year cycle in bitcoin is characterized by the increase in leverage that didn't exist in the prior
cycles in boitcoin and kicking the price around it is not doing what some hoped with the it of is reduce the price volatility and gone up and more highly core lated >> i'm curious about the business as a bank focused on crypto how does that work do you have a bank charter do you have to comply with the same regulations and compliance that the other banks do? >> we do, yes. we don't have a chatter but by the state of wyoming and will be opening in 2022 for business so we're in that gray zone now where the bank regulators trying to figure out and saying they want this -- the activities especially with regard to stable coin in the perimeter and so far not opened that perimeter to any
of us crypto native companies and this is the front of the line to test that. >> if you were advising the most senior federal level regulators on this do you suggest to bring the existing coins that exist at the moment under the regulatory framework to be the center piece or try to keep them on the outside and issue their own crypto coins >> great question. because the type of coin that is most concern regulators and should are those that are actually directly linked to the dollar as stable coins because every u.s. dollar has to settle through the federal reserve. so the federal reserve has control over stable coins and started to see facebook libra announced and saw the increased
interest of regulators as a new u.s. dollar payment system this is incredible technology for u.s. dollar and simp ympathc that it needs to be inside the banking system and why avanity got a charter. i will say with regard to bitcoin and other cryptocurrencies the smartest decision that the biden administration made is not to try to ban it. it would not be possible and not succeed but throw sand in the wheels but they have not made a decision trying toput everything inside fdic insured banks. you don't want that at the core of the finance shl system and by requiring the new banks to get
fdic insurance we are at the standing start because they did not insure anything related to the crypto but long story short what that did was create a real structural advantage for the big banks so a smart decision and not very smart decision so far. >> thank you for joining us. >> thank you for having me on. we have heard calls on software today a name blasting higher kate rooney with the northbounds. kate >> yeah. up double digits 18% after hours. beating in the third quarter it came in with an adjusted loss of 11 cents better than expected wall street looking for a loss of 38 cents. revenue beating.
it is a cloud and database platform shares up 19% and popping after hours following the beat back to you. >> thank you so much up 17% after hours. a top value investor weighs in on the three stocks he thinks people aren't paying enough attention to and investors can cash in on the classic car collecting boom. details later.
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u.s. stocks rebounding after a tumultuous performance last week which stocks should vinvestors seek let's bring in a guest jonathan, before diving into the stock picks just the overall environment after we have gone through a number of rotations in this market and potentially have a new outlook here because of the fed. >> yeah. no absolutely it is certainly dizzying the amount of rotations that we have had but i think investors have a great opportunity to buy stocks at significant discounts to what they're worth.
great many companies have solid prospects down 20, 30, 40% from the highs and a subset like in 1999 will never recover and whole host of companies to take advantage of the sell-off. >> like what give us your top pick. >> there's a couple ones one is scott's miracle grow is to us unbelievably interesting you have a traditional consumer business, lawn and garden business that -- they have a growing hydroponics business and get the traditional business and paying for the traditional business and getting the hydroponics business for free. it's fast growing and the traditional business is a great business that's coca-cola-like market shire, growing and a huge pandemic beneficiary this stock from $250 in april of
this year to i think it closed today about $138 >> so that's scott's what's the other big pick you have >> one is madison square garden entertainment and sports both are controlled by the dolan family and suffering from the so-called dolan discount and a thing to help both companies is online sports gambling and a theme that we have been exploring and noticed on cnbc a lot of people talking about how much draftkings is spending on their marketing. the biggest beneficiaries are both madison square garden entertainment and madison square gardens sports. >> isn't it tied up with the reopening and the path of the omicron variant and how comfortable people feel going
out to live events >> that's weighed on shares and did an acquisition that's question l but selling at levels that before the vaccine was even available. so at least in the case of madison square garden entertainment. it's a cheap stock if you believe that people will attend concerts in the future then this is a great place to put some of your money. >> let's talk about some other value sectors. what would be the top play in energy or avoid the sector altogether >> energy is something we generally avoid. we don't like commodity oriented businesses or businesses whose success is a commodity price that's totally outside of your control so that's an area that we would be avoiding >> interesting what about financials? top pick there or avoid? >> financials, we own bank of
america, jpmorgan. chubb is interesting great companies that have fantastic long termprospects with great market share and a great place to be in the -- over next two or three years. >> anything in technology that you would characterize as a value stock right now? we have seen a lot of these especially unprofitable tech companies take a beating. >> those are names as value investors we stay away from and uber extremely interesting at levels like this that's a company that's misunderstood on wall street and a fantastic reopening play and some ways reminds us of paypal four or five years ago with the value of the network built up over time. >> can you remind us of the
performance and the research put out? >> i don't have the figures on the top of my head but been around since 1975 and been creating value since then. >> jonathan, thank you for joining us. >> thank you for having me. on the show, mike santoli back to break down a key chart on consumer spending to hold clues a ktd the inflation picture here in america. buzzfeed was a bust. stock closed down about 11%. we'll talk about that later on "closing bell. ugh. i really should be retired by now. wish i'd invested when i had the chance...
despite a beat adjusted eps at 31 cents versus 2 cents wall street was looking for. on revenue also a beat at $186 million versus $178 million. that was up 40% year over year and subscription services and professional services revenue better than expected and billings topping estimates guidance may be what's causing the stock to drop. q4 revenue in line with what they reported this quarter revenue looking for $185 million to $186 million so that may be adding to the pressure shares down 8% after hours back to you. >> thank you so much it is time now for a cnbc news update with shepard smith. >> hi. from the news on cnbc, late senator bob dole will lie in state at the u.s. control on
thursday congressional leaders making the announcement this afternoon. he represented kansas in both chambers of congress. medina spirit that won the kentucky derby collapsed and died in a workout this morning at the santa anita park in california and in the trial of jeffrey epstein's former girlfriend maxwell the second of now accusers is testifying against her now. the woman called kate said maxwell created her at 17 to give her massages. and that of jeust sy smol yet's trial started. back to you.
>> see you then. meantime of to mike for a look at consumer spending and inflation. what metrics are watching? >> one of the key relationships probably that's going to dictate the 2022 outlook for the economy and inflation is goods spendinging. this shows what happened since february of 2020 before covid hit. goods, personal consumption expenditures almost 20% higher on run rate than before the pandemic services still not quite back to where they were well over a year and a half ago so if in fact we get a little bit of a rotation out of goods we pulled forward demand for stuff and should ease up supply chain kinks as well as gist moderate price began just look at the break even of inflation
five year. this is a help a lot of this is going on in the energy markets and just the idea of another little bit of covid anxiety that's having people wonder about the demand side and back to where we were in the spring and creating a new narrative around the fed which is yes to accelerate the bond buying program and maybe the first quarter of next year and then looks like it's moderating might wait and see and become flexible to when to raise rates. >> if inflation does cool down a lot of the move is fears of the omicron variant. >> for sure. >> i think it will be interesting to see if it does prove to be more mild the hope and the news flow today, whether the inflation expectations shoot
back up and this is a big problem again. >> for sure. for one thing it would probably require energy markets racing higher again to get the inflation dynamics pushing back to the highs and in this period of next few months the numbers cpi this week and up against depressed figures to make it inder term nantd. >> thank you we'll be joined by a portfolio manager buying stocks in last year's covid sell-off and where he is finding opportunities amid the recent volatility.
stores and it's going to get the items to customers in 10 to 15 minutes. this is about a model that moves from being a platform and it's relying more on vertical integration. the buildout and ownership of its own microfulfillment centers and they will have actual employees to staff them so further from the gig model it could look like a logistic company. and this is something that may not be all that surprising listening to tony shu and could help explain the valuation premium to other gig names like uber and lyft. since it's gone public it moves higher in the markets. doordash more than twice that of uber >> they should have done this a year ago when we needed it most in the pandemic. has anybody proven to do this
ultra fast last mile grocery delivery in a profitable way >> within 15 minutes is tough why the big players are still private like go puff and dark store doing this and super fast but a different model. you need sort of a smaller selection and relies on the technology in the microfulfillment centers whether anyone can doing it profitably no. like the gig economy all orr again. with scale you will become profitable we have seen that it's taken quite a while with the ride sharing and delivery companies. >> amazing that valuation multiple premium compared to uber and lyft. thank you. it's been a wild few weeks for the markets. a guest joins us with his outlook.
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stocks surging today dow posted the best session since march erasing last week's losses next guest put $9 billion to work when the market crashed early on in the pandemic and some paid off. joining us is david giroux from t. rowe price financial fund and has a book out due soon called "capital allocation. thank you for joining us we'll get to the stock picks in a moment but first of all the overall market outlook for 12 months, constructive or cautious. >> cautious. valuations are rich. it's been a good couple of years from a total return perspective but i think earnings growth next year in 2022 probably slows down pretty dramatically from the
robust growth this year and then come by nation of less stimulation is probably not a great environment. so probably little bit more cautious than normal and like to be aggressive when there's blood in the streets and there's not blood in the streets these days. >> let's get into the stock picks to bring us today. the first one is industrial space. >> sure. yeah i think a favorite idea and largest bet in the pochl is ge ge trading at a massive discount to the parts ge announced this spin-off to three entities and all three are going to be very well positioned over the next five and ten years and positive on ge and think there's upside and very positive there. >> what are investors not appreciating about that story?
seems like movement and pushing for this for a long time and then announced it and not poerked up the stock. >> i think what happened is this horrible omicron covid situation developed that's hurt them and others that are travel related but what's interesting is think about the health care business accelerating organic growth. an aviation business probably the best outlook for five and ten year j even the renewables business and power business i think the hydrogen economy as well as kind of big software business there and all three are extraordinarily well positioned to benefit over -- the next ten-year story for all three is
very positive. >> what's the top pick of the big cap tech names >> i really like amazon. if you asked me a year ago we would have talked about google but we like google quite a bit but amazon is two quarters away from an acceleration to organic growth rate. a combination of good business and aws is an amazing business and kind of under performed and reacceleration is a good stock for 2022 it's been a laggard and we feel good about. >> it's basically been going nowhere and bears will say the aws slow rate is growing with increasing competition on cloud and digital spending or -- you know, shipping and buying has peaked in the pandemic.
>> remember aws actually is the one cloud player in the last four quarters where their organic growth is accelerating haven't seen that out of the other two cloud providers. i would have expected google to have faster growth but amazon is -- they're the one player whose organic growth rate is accelerating aws is competitive and getting bette every if anything in the environment. there's a case to be made that buying amazon today if you think out three to five years at 3300, 3400, that's the value of aws down the road and almost getting exactly the rest of the business for free and getting kind of close. some of the parts is becoming compelling on amazon. >> and let's get the final pick
in the past. utility space. >> yeah. again, everybody is concerned about rates and inflation. probably no better utility out there positioned for ten to 15 years than amron.years it is a growth company, exceptional management, in the right region, in the midwest, a lot of wind and solar resources there. i think that's a compelling opportunity, a low-risk opportunity for investors in the next -- really, the next 15 years. >> david, thanks so much for joining us much appreciated. >> thank you up next, buzzfeed and classic car insurer haggerty hitting the market today facts and ideas to hit the street and what it tells us about the overall market when "closing bell" returns trust me, after 15 walks ...it gets a little old.
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1 at a 1.2% all sectors in the green nasdaq closed up up. the russell 2000 ending up 2%. better news about the omicron variant part of the help here. you saw airlines, hotels and casinos do the best. it has been a wild day in the spaq world losing a probe from regulators while lucid said it received a subpoena which is related to its spac deal. two new names came up. buzzfeed and haggerty. leslie, kick it off. what happened? >> yeah. i did the same, sara it was quite a volatile day for buzzfeed, closing down about 11% in its trading debut the digital media company went public
apparently a nod to the address in the avengers comic. before the deal was completed, 94% of cash held in a spac's trust was redeemed, leaving just $16 million. that amounted to the highest redemption proportion of any spac this quarter and more than double the average for this year's redemption rates. buzzfeed will receive $150 million in proceeds in conjunction with the merger. however, the high redemption rate is responsible for those price swings because a far lower than expected flow buzzfeed plummeted shortly there also df. nbc universal, the parent company of cnbc is an investor in becuzzfeed. >> how many others are in the pipeline that will be watching this >> yeah.
it's a good question, sara, because a lot of people were anticipating this as being a proxy for digital media because it is the first play to step foot into the public markets obviously not off to the best start. there are some issues related to this company at the present time, including some union work stop that took place last week right as investors were casting their votes and sending in the redemption notices, all of that was taking place around the same time then of course the redemption issue itself got a lot of press which wasn't helpful for today's first day of trading so i would urge investors to be patient, watch this thing over time to really get a sense of how the market feels about digital media. >> leslie, thanks so much. much appreciated let's get to robert now with a look at haggerty's first day of trade. >> down slightly today still up over 30% from that listing on friday. their main business is insuring
classic cars you have state farm and markel big investors. $3 billion the company is expanding into content. you have car events, a magazine, a youtube channel with two million subscribers, all with the goal of being the commercial hub for $1 trillion in classic cars now on the road. >> people who love cars, they really know -- they have no boundaries when it comes to how much time and money they will spend on them. that's what makes this different. it is not a regular car. it is not from getting from point a to b. >> this is also the first time that stock investors have been able to play the classic car market prices and sales up over 20% over the past year as young collectors started learning about and buying cars online this is a play on the insurance market but also on the collectibles boom and the wealth of the wealthy which, guys, as we all know just keeps going up. >> so would a traditional auto insurer or even one of the new auto insurers like lemonade not
have the expertise or ability to offer insurance on cars like these? >> well, you made the important point there with expertise it is really about appraising, knowing these values they have the best database in the industry for whether it is that 1966 porsche 911 or a 1988 mustang. they have the data they can write the best policies on that stuff. it is really a specialized corner of the market. >> we saw some of those gems outside the stock exchange today in celebration of the ipo. robert, thank you. robert frank, see you soon. >> robert just said a 1988 mustang. i mean, when i was a senior in high school, a friend of mine got one of those new. >> so you're old enough -- >> i guess i'm now old enough. >> you're classic yourself. >> i don't think he still has it. >> what was your first car >> a 1969 pontiac grand prix. >> you also have an old car you are trying to sell. >> i'm not trying to sell it
people can make offers. >> that's a good point you are trying to put it in that classic car category. >> but you don't have the hagerty insurance. it was a strong day. it was broad but it wasn't all encompassing what did you make of some of those losers >> it's still a selected market. i think it was a reassertion of that rotation that we got used to for a long period of time you did see yields go up it meant people were slightly more uncomfortable about the economic situation i think last week we were stuck. we couldn't really go in one direction in an optimistic way that to me is why you left behind some of the megacap growth stocks. in general, it does seem like the market front loaded a lot of selling, a lot of things looked kind of washed out i think that's a better setup for at least the next couple of weeks. >> the bigs pulled back. did it pull back enough? >> it pulled back enough for one
day. but it's still implying 1% plus daily moves. it has to be a process of coming back in, probably below 20 before too long if the market is going to calm down. >> we are out of time here on "closing bell. thanks so much for watching. ""fast money" starts right now. thank you. live from the nasdaq markets overlooking the glorious new york city time square, this is "fast money," the big show i'm in for melissa lee tonight our trader lineup you are seeing in the four pack there tonight on this show a baba blowout. seeing their best day in more than four years, a 10% move in the regular session. what's behind it and does it give the all clear for the rest of the chinese internet sector? plus, rev your engines, engine capital, that is